
** Description **
The replication package includes a dataset constructed by web scraping from the largest online lightbulb retailer 1000Bulb.com (data source). It comprises the STATA code responsible for generating Figure 1 and the private cost function, an Excel file for simulating data for Figure 2, the R code for simulating data for Figure 3, and the final Excel file. The replicator should anticipate the code to complete execution about 1 hour.


** Step 1: Figure 1 & Private Cost Function (STATA 16) **
	run 'bulb_numerical.do'
	This script generates the Figure 1 and Private Cost Function 
	Datasets used in this script include bulb.dta


** Step 2: Social Cost Function **
	The social cost P^*(T) includes both private costs P(T) and all external costs from production of a lightbulb (but not from the use of it). First, for climate damages from CO2, we use $50/ton as the estimate of the social cost of carbon (SCC) from the U.S. Interagency Working Group (2021, p.7). Then, from the life-cycle assessment study of Scholand and Dillon (2012), we obtain an estimate of CO2 emissions during the manufacturing of each bulb type, Weighting by the quantity of each type, we find 0.0029 tons of CO2 were emitted per unit of production of the average bulb. 

** Step 3: Figure 2 **
	Generate simulations using the derived Equation (2) and Equation (5), given the private and social cost function respectively.
	Data and Figure 2 are included in Figure 2.xlsx.

** Step 4: Figure 3 **
	Execute the Figure 3.Rmd (R) file to generate simulated data for Figure 3. The simulation is based on Equation (12).
	Data and Figure 3 are included in Figure 3.xlsx.

